On today’s show we’re talking about math. That’s right math. We humans are used to linear thinking. It’s how many of us interact with our physical world.
When you double the distance, it takes twice as long to get there. If the price goes up by a dollar, you need to take one more dollar out of your wallet. This is all linear thinking. This is the way we are used to seeing the world. We are not accustomed to thinking of geometric functions. Geometric functions accelerate. These are functions where the number in the exponent is greater than 1.
Your parents no doubt taught you about the power of compounding. They probably used the example of compound interest, and how over time, with the power of compounding, you can multiply your earnings.
We humans are really terrible at understanding this. Most people don’t save money because they can’t see the tangible benefit in the short term.
Host: Victor Menasce